By Michael Calia
Health-care industry real-estate investment fund HCP Inc. (HCP)
on Monday said it would record a $36 million noncash write-down in
the current quarter after one of its joint ventures forecast lower
Medicare reimbursement rates next year.
The charge led the company to cut its earnings guidance for the
full year.
The firm now expects its per-share earnings to range between
$1.96 and $2.02, down from its previous guidance of $2.04 to $2.10
a share.
It also cut its projection for funds from operations--a key
profitability measure for REITs--to $2.95 to $3.01 a share, from
$3.03 to $3.09 a share.
HCP said it would record the charge on its 9.4% stake in HCR
ManorCare Inc. after the joint venture projected that patient payer
sources would continue to reflect a shift from Medicare to Medicare
Advantage. This change means lower reimbursement rates and length
of stay for HCR ManorCare's skilled nursing segment, HCP said in a
filing.
Write to Michael Calia at michael.calia@wsj.com
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